* Nine out of the TSX’s 10 main groups were higher
OTTAWA, Oct 22 (Reuters) - Canada’s main stock index rose on Thursday as a rebound in the price of oil lifted energy shares, but gains were limited as Valeant racked up heavy losses for the second day in a row after allegations the company was inflating its revenue.
Investors were also weighing the start of earnings reporting season with results from companies including Teck Resources and Rogers Communications.
Valeant Pharmaceuticals International was the biggest drag on the Toronto index, losing 13.9 percent to C$132.72, making for a loss of about 30 percent over two sessions. An influential short-seller on Wednesday accused the company of using specialty pharmacies to inflate its revenue, which the drugmaker denied.
But the energy sector helped keep Bay Street stocks in positive territory, rising 1.6 percent as the price of oil recovered as investors re-thought data that showed falling stockpiles of fuel products.
Financial stocks also buoyed the market, rising 1.2 percent. The energy and financial sectors are the two biggest influences on the index.
“The energy stocks are bouncing from yesterday and the bank stocks seem to be catching a bid here the last few days,” said Paul Hand, managing director at RBC Capital Markets.
“I would say volumes have been remarkably light the last several days so I’m not sure there’s a lot of conviction as we start into earnings season,” he added.
In mid-morning trading, the Toronto Stock Exchange’s S&P/TSX composite index was up 99.07 points, or 0.72 percent, at 13,803.26.
Teck Resources advanced 4.3 percent to C$8.72. Excluding a non-cash writedown, the company reported earnings that were better than expected.
Shares of Rogers Communications rose to their highest level since April 2013 after the company reported a surprise jump in third-quarter profit. Rogers was up 3.1 percent at C$51.20. (Reporting by Leah Schnurr)